Mr McCully says it’s not unusual for New Zealand to disagree with Australia and the US on Middle East issues.

“We’ve got an independent foreign policy, we make our own evaluation… I think New Zealand’s in the right place, given the traditional approach we’ve brought to this issue.”

Mr McCully dismissed suggestions New Zealand’s stance would become a sore point with the US.

“We’re grown-up countries. We talk to each other about these things, we agree to disagree on some things. It’s a disagreement over degrees rather than substance.”

The Green Party has welcomed the Government’s decision, saying it will increase the chances of Israel and Palestine reaching a “credible and enduring political settlement”.

“New Zealand needs to make sure that Palestine and its people enjoy the rule of international law and secure their legitimate political rights,” says Green Party global affairs spokesman, Dr Kennedy Graham.

Mr McCully says New Zealand will also make clear to the UN that it supports Israel’s right to safety and security and condemns the recent actions of Hamas extremists in Gaza.

He says New Zealand supports the leadership of Palestinian President Mahmoud Abbas.

Watch a live stream of the General Assembly plenary meeting on Palestine below.